Income statement and balance sheet data for Great Adventures, Inc., are provided below.

As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.

Required:

1. Calculate the following risk ratios for 2022.

a. Receivables turnover ratio. Use net sales revenues for net credit sales.

b. Average collection period.

c. Inventory turnover ratio.

d. Average days in inventory.

e. Current ratio.

f. Acid-test ratio. There are no current investments.

g. Debt to equity ratio.

h. Times interest earned ratio.

2. Calculate the following profitability ratios for 2022.

a. Gross profit ratio. Use net sales revenues.

b. Return on assets.

c. Profit margin. Use net sales revenues.

d. Asset turnover. Use net sales revenues.

e. Return on equity.

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GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues $164,150 Interest revenue 120 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense $38,500 51,400 17,250 6,785 Income tax expense 14,500 Total expenses 128,435 Net income $ 35,835